Values for Used Homes-need a resource for checking if price is fair.

[KTnKids]

We found a 1989 single wide for $10,000 in Greene County, VA. It is in a small park that is basically a big field with 3 rows of homes. Lot rent is $250/mo. It has many older or low-end newer homes - in other words, this is not a beautiful place to live, but it is more a matter of function. It is nice enough for our purpose which is to provide safe, stable housing for our daughter and her two children as cheaply as possible.

The home itself is livable, but has the look of a tired rental unit. It is beat-up and painted some horrendous colors inside, has fairly new low-end neutral carpet, comes with new fridge & stove, no washer or dryer, but has hookups. Anyway, basically it is not pretty, but some elbow grease and paint and minor repairs will do a lot for the interior appearance. The outside seems sound - my husband once worked for Clayton doing repairs on newly placed homes, so hopefully he knows what to check. It has a storage shed, small deck, and a nice fenced & landscaped yard. It has 3 bedrooms and two full baths. I don't remember the manufacturer. (how important is that to value?)

It seems like a good deal to us, but we have no idea how to verify this. We would buy it for cash and then rent it to our daughter, paying the lot rent ourselves, and leaving her to pay the utilities.

How do we know if this is a good deal? How do you buy a home like this? Do you need a lawyer, title insurance, homeowner insurance? (it is for sale by owner). Should we hire a realtor? Also, what have we not thought of that we need to be careful about? We really need some advice, but quickly as we need to get our daughter a home very soon, before she is homeless.

thank you for any help!

[David Oxhandler]

$10,000 for a habitable home sounds like a bargain.  Find out what it would cost to bring a home into that or any nearby park.  The cost of delivery, blocking anchoring, connecting to utilities, skirting, shed, deck walkways and or driveways, permits and other local fees would probably exceed your purchase price.  While you are buying a home you are also getting all of the above included. You can get a BOOK VALUE REPORT online at www.MobileHome.com/bookvalue This service will give you a very economical evaluation of your home based on the information you submit. What you will get back is the typical resale value of that year make and size home across the country for the past few months. This is not an appraisal . The reports address possibilities that include the manufactured home ONLY. No appraisal, evaluation or consideration of the items listed above, location, or local market conditions are included... just the local market value of your manufactured home. Title insurance or a realtor are not a factor as there is no real-estate included.  You might want to have a lawyer draw up or look over the sales contract and check to see that the state title for the manufactured home is property transferred into your name.  Homeowners insurance is not required but strongly advised.  You will be investing a nice bit of your hard earned cash and in the event of a fire, tornado or other disaster without insurance you would suffer a total loss.  For the amount you will have invested, mobile home insurance in most parts of the country will be very reasonable.   Read the free article All MH Owner's Insurance Policies are NOT Alike and get a free, no obligation quote at www.MobileHomeInsuranceQuote.com I looked on line at your local Greene County Record at www.Greene-News.com  There are only three homes listed for rent in today's paper but are all well over a thousand dollars a month.  It seems $10,000 for rental, that your husband has the skills to bring back to like new condition,  would be an excellent investment.  If you were not renting to family and looking at this as a business it seems that you would make and nice return on investment.

[rmurray]

The value of this home like any other is location related...Shopping the local market to compare is the most common way folks decide...Beyond that a professional appraisal is the most accurate..It will consider local comparable, location and condition...But some folks feel better with a "book Value"...Of course book values will be only as accurate as the info you give them to develop the estimate...There is a book value service available here for about $30 (1/10th of a professional site apparisal)..You can find it here:

https://ssl.xpr.com/mfdhousing/mhcredit/value.php

It will be asking substantial information about the home. Make, model, size are all important ( because of the wide array of different quality new homes...Example a 18 year old Rolls Royce will have a different value than an 18 year old Kia)....To further refine the number they will need serial number and a complete list of included features Also an honest opinion of condition is asked for.

As far as other things to look for, you are lucky to have a hubby experienced in manufactured homes, he will know to check for what could be expensive repairs (such as roof, floors, mold, major appliances) and you will be able to save the hundreds of dollars in professional home inspector fees usually recommended here...

You might want to check the park by at least by talking to other residents and maybe a check of the local offender registry..Also local sheriff's department crime stats.. .Safety is a major concern for most single girls...

You probably do not need an attorney, but they can give you proper local legal advice and make suggestions for a purchase contect...This sale will not be much different than an automobile..It will require a title transfer (some states will collect any back taxes due. Local tax collectors can tell you if this home's are up to date..I have seen homes of this age with thousands in back taxes due...

The title should not have any liens..if it does be sure you agree to pay them directly to the bank...The title should be in the sellers name and you should probably ask for picture ID...Ask your title office if they have a lien search process to be are there are no liens...The title office will advise you on the process and forms necessary to file with them..

Homeowners insurance will be up to you...If you chose not to buy it you will be risking ALL of your 10K. As a landlord you should consider liability inurance as well..No liability you could be risking considerably more... (example, your tenents pitbull bites a neighborhood kid...they will sue the person with the money probably not your tenent)